Submitted by Morrison Bonpasse, Jul 21, 2007 07:16

The long term solution to many of the world's financial problems and risks is to implement a Single Global Currency, within a Global Monetary Union where there will be no such currency fluctuations and no current account imbalances and no currency crises. See www.singleglobalcurrency.org. The Single Global Currency could be backed up by gold or other precious metals or other commodities, or it could be a fiat currency, backed up by faith in its acceptability by government and others, as are all of the 146 currencies of the 192 U.N. members today.

The benefits of a Single Global Currency will be substantial:

- Annual foreign exchange transaction costs of $400 billion will be eliminated.

- Worldwide asset values will increase by about $36 trillion.

- Worldwide GDP will increase by about $9 trillion.

- Global currency imbalances will be eliminated.

- All Balance of Payments problems will be eliminated.

- Currency crises will be prevented.

- Currency speculation will be eliminated.

- Currency fluctuations, and the need for hedging, will be eliminated.

- Worldwide interest rates will be reduced due to the elimination of currency risk.

- Worldwide inflation will be reduced as currency exchange rates will no longer be a cause.

- The need for foreign exchange reserves, now over $4 trillion, will be eliminated and these funds can be used for more productive purposes than maintaining an inefficient foreign exchange system.

The people of the 192 UN members now need only 146 currencies to transact all their business. By next January the European Union will have 15 members, and the number of currencies will drop to 144. Why not plan and research now for an accelerated movement to a Single Global Currency.

How to get there from here? It can be through a combination of processes: ization (whether euroization or dollarization) and the expansion and creation of monetary unions. Also, the IMF or Bank for International Settlements could establish an international "central" reserve bank for countries which wish to have a stable currency which would be based on an aggregate of current international currencies. At some point in this transition, there should be convened a number of international monetary conferences, as was done in 1944 at Bretton Woods, New Hampshire to firmly establish the Global Monetary Union.

It's common cents to move toward common cents.

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